Rollfast Mark II      
Toilet Tissue Dispenser 
for
 public washrooms/restrooms

                          

 Rf

 

  Cost of Production
and Marketing

 

This page addresses the cost of production and also marketing costs.

Our plastics engineer got a quote from a Sydney plastics company for the moulding, which was for AUD $25.00 for each unit.

But of course the production cost doesn't end there. Here is our estimate:
 

   Action or Part                          AUD $
  • moulding cost in plastic                   25.00
  • two springs                                       .15
  • three pieces of bent wire                     .25
  • assembly allowance                           2.50
  • shrink wrapping in plastic                    .10
  • a shipping carton                              2.00
  • royalty for designer                           2.00
  • selling costs to find distributors          5.00* 
  • amortisation of tooling cost                1.00
  • freight allowance                               2.00 

                                                                  ____________

  Total                                                $40.00

 


                                         

Obviously these prices may vary depending on where you are situated and what your local costs may be.

* You (the manufacturer) will need your own sales team to find and sign up distributors.

It is suggested the manufacturer’s aim would be to appoint distributors (who must have sales reps) who will make individual presentations to people who run public washrooms - of which there are untold thousands in every town and city (see the 'Venues For Rollfast' page on this website). 

 

One way to find distributors is to take a booth at a trade fair; hundreds or even thousands of distributors can be appointed in just a few days.

 

Otherwise, distributors can be quickly found following a visit to any city in the world – a glance at “Washroom Supplies” or "Toilet Tissue Distributor" in the yellow pages will give you plenty of leads; and based on our Mark I experience, with a good selling video, very few potential distributors will turn you down.

 

To save you doing the maths, if you took a city of 8 million people, at .5% that would be 40,000 sales. With a budget of $5 per unit that would yield $200,000. Is that enough for you to find the distributors?

 

In this modern day and age it may be possible to find and appoint new distributors via the internet - at a vastly reduced cost! (That option wasn't available 20 years ago).

It is suggested they pack six to a carton for shipping to your distributors, this brings down the carton cost. We packed Rollfast Mark I six to a carton and specified that all orders by distributors be a multiple of six - and that worked perfectly.

Once the product becomes 'known', distributors will contact you begging for the product - that is what happened last time!

 

Next page: Projected Gross Profit